Economists and financial professionals all over the world are worried about both the stock and crypto markets. The rise in prices of assets in both markets over the last year has been astronomical. Even when it seemed like prices dipped for some months, they quickly recovered. In this market where everyone keeps talking of bubbles, one might wonder what should I buy now?

The answer to that question is hidden behind some other questions. Let’s get into it.

The first question you need to ask yourself is why. Why do you want to own either investment?

Are you looking for an investment that will grow very fast in a short time? Short time is from a few days, months to less than 5 years! Yes, 5 years is a short time when it comes to investing. If yes, do you know the risks you are taking when investing in something like that?

The thing with investments that can rapidly increase is, they can also rapidly decrease. The crypto or NFT or stock that can give 10 times your money in a few days or months can also lose more than half your money in that same time. Are you prepared for that risk?

Also, how long are you willing to hold these investments for? Are you willing to hold the stock/coin through a downturn? When Bitcoin first hit its all-time high of almost $20k in 2017, it took over 3 years before it got to that price again. Are you prepared to potentially hold this investment for years if there is a market downturn? Or do you think you would run at the first sight of adversity?

Do you need that money for something urgent like rent or to pay back a loan? Have you considered the possibility that the stock/coin price may fall below the price you bought it and not recover by the time you need it, thereby making you short on your payment?

If you are buying when everyone is excited and feels like there’s a lot of money on the ground waiting for the picking, do you know why people are excited? Is that excitement rooted in hype, or are there strong reasons supporting why people are excited? Like, say the company’s profits are going to increase rapidly.

Stocks and crypto are two investment vehicles that easily get affected by hype. The Gamestop, AMC saga at the start of 2021 is a great example of this. Hype is very fleeting. It can be up one day and down the next. All it would take to be left losing would be to buy one of those stocks on a day when the hype is at its highest.

It’s easy to look at the stock market and crypto space when things are going well and imagine all the money you could have made but have you also considered what you could lose and are you willing and able to take the risk?

If you do not have the appetite for the risk of potentially losing all the money you invested and/or you might need the money you put in these options for something soon; then you might want to look at other less risky opportunities because stocks and crypto can seriously burn someone if you’re in the wrong place at the wrong time. Consider the fixed income and real estate options offered by Rise.

If you are ready for the risk of potentially losing all or a large portion of the money invested and are willing to stay invested for as long as it takes to turn a profit, then the next question you need to ask is which do you understand better?

Do you understand one more than the other? Do you understand both or neither?

The option you understand is more likely to pay you better because you can more easily spot the best buying and selling opportunities thus putting you in a better position to make profit.

If you understand both, then why not invest in both? If you truly understand both, you would know the best opportunity to make profit. So do that.

If you don’t understand either, then you might want to start learning about them and while you learn, consider investing in a diversified stock portfolio where you can benefit from the growth in the stock market like the one offered by Risevest and also invest in some coins for yourself.